Jim Cramer Backs FedEx (FDX) Over UPS

We recently released a list of 10 Stocks Catching Jim Cramer's Attention Recently In this piece, we will examine how FedEx Corporation (NYSE:FDX) measures up against other stocks that have caught Jim Cramer’s attention.

In a recent segment on CNBC, Jim Cramer discussed the current developments within the AI data center sector. He mentioned that according to insights provided by major players in these firms, there doesn’t seem to be any reduction in demand.

Now that earnings season is in full swing, many firms related to the AI data center sector have reported their figures, and let me tell you—they've delivered some impressively strong numbers. It seems as though there wasn’t ever really an issue with the AI infrastructure narrative after all.

Cramer subsequently discussed various prominent AI businesses and mentioned that many leading companies are experiencing robust demand from data center clients. He thinks that under Satya Nadella’s leadership, this large technology corporation has reduced its investment in AI as part of their "split" with OpenAI.

Wall Street has grown quite doubtful, and I don't believe that sentiment has shifted significantly. However, considering the trends observed during this earnings period, my outlook on the situation has brightened considerably, particularly with potential further easing of trade tensions from the administration and stock prices remaining low. Indeed, they couldn’t be cheaper.

READ ALSO: 7 Top Stocks for Long-Term Investment and 8 Affordable Jim Cramer Stocks Worth Investing In

In this piece, we've chosen 10 stocks that were discussed by Jim Cramer during recent segments on CNBC. For each firm listed, we’ve also included data regarding current hedge fund interest. We focus particularly on these equities because numerous studies indicate that following what prominent hedge funds invest in could lead us to outperform the broader markets. Our quarterly advisory service adopts a strategy where we select 14 different small- and large-capitalization companies per quarter. Since May 2014, this approach has delivered returns totaling 373.4%, significantly surpassing its reference index by 218 percentage points. see more details here ).

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FedEx Corporation (NYSE: FDX )

Number of Hedge Fund Investors: 55

In his most recent show on CNBC, Jim Cramer expressed a preference for FedEx Corporation (NYSE:FDX) over UPS.

I believe I am skeptical about their approach, but I definitely have no doubts regarding the strategy of another heavily declining stock like FedEx, which I would consider purchasing. Raj Subramaniam is performing exceptionally well. Today, FedEx's stock has increased, and I feel this could mark the start of significant growth. This puts UPS at a disadvantage.

Sound Shore Management provided the following commentary on FedEx Corporation (NYSE:FDX): Q3 2024 investor letter :

During this period, critics with significant concerns shared a prevailing issue: indications of an economic slowdown. NXP Semiconductors, a prominent supplier of chips for automobiles, experienced declines due to uncertainties surrounding car demand and shipping challenges. FedEx Corporation (NYSE:FDX) underperformed due to reduced trading volumes. Notably, each firm possesses methods to boost profits beyond typical economic fluctuations; however, they aren’t completely sheltered from the latest downturn. Navigating through business cycles demands investor endurance and a forward-looking mindset — qualities we possess."

Overall, FDX ranks 5th On our watchlist of stocks tracked by Jim Cramer, we recognize the appeal of FDX. However, we're convinced that lesser-known AI stocks offer better prospects for substantial gains over a brief period. One such AI stock has seen growth since the start of 2025, whereas many well-known AI stocks have declined by approximately 25%. For investors seeking an AI stock with stronger potential than FDX and trading below five times its earnings, refer to our detailed analysis available in our latest report. cheapest AI stock .

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Disclosure: None. This piece was initially published at Insider Monkey .